The impact of plastic ban on industry

Maharashtra has banned the use of plastic from 24th June 2018 and the industry insiders state that job losses from the ban will lead to a deterioration in the GDP of the State. It could also increase banks’ bad loans from the sector. It includes thermocol and carry bags and could result in a loss of up to INR 150 billion and almost 3,00,000 jobs. It has hit the industry very hard and could lead to huge number of people going jobless overnight.

About 2,500 members of the association have had to shut shop following the decision by the government. The state announced an end to the manufacture, use, sale, storage and distribution of plastic materials like one time use bags, PET, spoons, plates, thermocouple items and PETE bottles on 23rd March. The government had given three months to dispose of the stock. The three month period ended on 23rd June.

Retailers across the State have mentioned that heavy fines for violating the bank will make them financially unviable and could force them to turn away customers. Customers across the state have complained of inconvenience and are questioning whether the ban makes any sense. There is a fine of INR 5000 for first time offenders and INR 10,000 for second time offenders. Third time violation will lead to a fine of INR 25,000 in addition to a three month imprisonment.